Correlation Between Cantargia and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Cantargia and Surgical Science at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cantargia and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantargia AB and Surgical Science Sweden, you can compare the effects of market volatilities on Cantargia and Surgical Science and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cantargia with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantargia and Surgical Science.
Diversification Opportunities for Cantargia and Surgical Science
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantargia and Surgical is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Cantargia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cantargia AB are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Cantargia i.e., Cantargia and Surgical Science go up and down completely randomly.
Pair Corralation between Cantargia and Surgical Science
Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Surgical Science. In addition to that, Cantargia is 2.02 times more volatile than Surgical Science Sweden. It trades about -0.25 of its total potential returns per unit of risk. Surgical Science Sweden is currently generating about 0.17 per unit of volatility. If you would invest 13,070 in Surgical Science Sweden on August 28, 2024 and sell it today you would earn a total of 1,780 from holding Surgical Science Sweden or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantargia AB vs. Surgical Science Sweden
Performance |
| Timeline |
| Cantargia AB |
| Surgical Science Sweden |
Cantargia and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantargia and Surgical Science
The main advantage of trading using opposite Cantargia and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantargia position performs unexpectedly, Surgical Science can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Surgical Science will offset losses from the drop in Surgical Science's long position.| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience AB |
| Surgical Science vs. BICO Group AB | Surgical Science vs. Hexatronic Group AB | Surgical Science vs. Swedencare publ AB | Surgical Science vs. MIPS AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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